MANAGERIAL OWNERSHIP AND FINANCIAL PERFORMANCE: THE MODERATING ROLE OF POLITICAL CONNECTIONS IN JAKARTA ISLAMIC INDEX COMPANIES
DOI:
https://doi.org/10.20961/wbkebp32Keywords:
Managerial Ownership, Political ConnectionsAbstract
The Jakarta Islamic Index (JII) serves as a Sharia-compliant stock index established by the Indonesian capital market in 2000, originally consisting of 30 Sharia stocks reviewed annually. Evaluations now occur semiannually in May and November. This research investigates the impact of managerial ownership and political connections, as well as the role of political ties in moderating the financial success of JII-listed firms between 2017 and 2023. The study focused on a population of 12 companies chosen through purposive sampling. Data processing involved the use of multiple linear regression and Moderated Regression Analysis (MRA). Findings indicate that managerial ownership and political ties both positively influence financial results, and political connections effectively moderate the link between managerial ownership and financial performance.
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